Answer:
EagleCorp is more likely to create value while Myna Bird Inc. is more likely to destroy value.
It is April 2018 and Mark is a novice investor who wants to decide between purchasing shares in EagleCorp or Myna Bird Inc. In the fiscal year 2017, EagleCorp's return on invested capital (ROIC) was 15 percent, and its cost of capital was 12 percent. During the same period, Myna Bird Inc.'s ROIC was 22 percent and its cost of capital was 25 percent. Here EagleCorp is more likely to create value while Myna Bird Inc. is more likely to destroy value.
Answer:
The price of the bond is $659.64.
Explanation:
C = coupon payment = $62.00 (Par Value * Coupon Rate)
n = number of years = 6
i = market rate, or required yield = 15 = 0.15 = 0.15 /2 = 0.075
k = number of coupon payments in 1 year = 2
P = value at maturity, or par value = $1000
BOND PRICE= C/k [ 1 - ( 1 / ( 1 + i )^nk ) / i ] + [ P / ( 1 + i )^nk )]
BOND PRICE= 62/2 [ 1 - ( 1 / ( 1 + 0.075 )^6x2 ) / 0.075 ] + [ $1,000 / ( 1 + 0.075 )^6x2 )]
BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]
BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]
BOND PRICE= $239.79 + $419.85 = $659.64
Answer:
Downward sloping curve with 300 intercept on mini sandwich axis, 150 intercept on melon spices
Explanation:
PPC reflects production combinations (2 goods), which can be produced given same resources & technology. It is downward sloping because of inverse relationship between two goods, one good increase leads to other good decrease - given same resources & technology.
In this case, it is with analogous factors : production possibilities with respect to unlimited ingredients (resources), limited time. Although resources are given to be unlimited, PPC is likely to be downward sloping : because of inverse relationship between goods - based on time constraint (one good increase will withdraw time from other good & reduce it).
The PPC intercept on X & Y axis represents the maximum amount of that axis good, which can be produced. So: it has 300 intercept on mini sandwich axis, 150 intercept on melon spice axis.
The slope & shape of PPC depends on Marginal Opportunity Cost, which depends on relative efficiency of resources in two goods.
Resources equally efficient - Constant Good Sacrifise Ratio i.e MOC - PPC straight line. Resources unequally efficient - Increasing Sacrifise Ratio (from efficient to inefficient good) i.e MOC rising - PPC Concave. Increasing Sacrifise Ratio (from inefficient resources to efficient resources) i.e MOC falling - PPC Convex.
If MOC between mini sandwiches & melon spices is constant, PPC is straight line . If MOC between them is rising, PPC is concave. If MOC between them is falling, PPC is convex.
Answer:
Growth rate = 7.50%
Explanation:
Given:
Return on investment = 15%
Retention ratio = [1.5 / 3] 100 = 50%
Find:
Growth rate
Computation:
Growth rate = Return on investment*Retention ratio
Growth rate = 15% x 50%
Growth rate = 7.50%
I would say FHA, from what I know.